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Pakistan to purchase natural gas from Iran

ISLAMABAD, April 8 (KUNA) -- Pakistan's Federal Cabinet Wednesday approved the construction of long-delayed Pakistan-Iran-India (IPI) gas pipeline and also gave the go ahead for purchase of 750 million cubic feet gas from Iran to fulfill the growing local requirements.
The cabinet, chaired by Prime Minister Yusuf Raza Gilani, also decided to a gas import agreement with Iran and to utilize the imported gas for power generation in place of furnace oil which would prove about 40 percent economical, Minister for Information and Broadcasting Qamar Zaman Kaira told media after the meeting.
The multibillion IPI gas pipeline project has been delayed largely owing to US pressure on Pakistan and India and also differences over the price mechanism between the three countries.
India has quietly drawn out the project, but China has shown interest to be part of the overland gas pipeline project and Pakistan has remained committed due to ever-increasing energy crises in the country.
Minister Kaira told media that the cabinet called for aggressive planning for exploration of natural resources so that the countrys dependence on import of oil and gas could be reduced.
To a question about US pressure, the minister rejected interference by any other country in the project and said that Pakistan is a sovereign country and makes its decisions independently. (end) amn.ema KUNA 081748 Apr 09NNNN